Leenane Templeton – Newcastle Business Accountants, Business Advisors & Financial Planners

Author: Harlan Marriott

  • Clearing out your documents for the new year

    Clearing out your documents for the new year

    The holiday period is the perfect time to declutter your documents but avoid throwing out those essentials you need to keep.

    Since different rules apply to different documents, the length of time a business needs to retain them depends on what the documents are. Holding on to your documents for seven years is a good starting point for most businesses.

    The essential rules are as follows:

      • Financial records must be kept for seven years after the transactions have been completed.
      • Tax records must be kept for a minimum of five years.
      • Employment records must be kept for seven years after termination.
      • Documentation of assets must be kept for five years after they are sold.

    Documents relating to legal action must be held for the period of litigation or permanently.

    When re-organising your documents also consider that:

    • Essential documents must be kept in a safe and secure location to avoid any risk of losing them to fire or theft.
    • Confidentiality and privacy obligations may exist. Consider your storage location, potential access to the documents and the agreement with any third party storage provider.
  • Planning for the holiday rush

    Planning for the holiday rush

    The holiday rush can be your most profitable time of the year so long as your small business is set up for success in the Christmas period.

    For many businesses, Christmas time is their most stressful season because they do not adequately prepare for the increased customer demand that occurs at the end of each year. Being understaffed or running out of inventory during the holiday period can jeopardise a business’ brand and customer service reputation in the long run.

    Ensure you are ready for the increased customer demand by considering the following checklist:

    Have sufficient staff

    You will need to schedule more staff than usual to deal with the customer influx over the holiday period. Make sure your staff are aware of the expectations for increased availability in advance. You might need to consider hiring temporary staff. When recruiting, look for candidates who are quick- learners, can cope under pressure and have flexible availability.

    Get on top of leave

    Nothing lowers morale more than forbidding leave at Christmas. Find a happy medium by giving leave on a ‘first come, first serve’ basis. Consider giving staff an option of working Christmas Eve or New Year’s Eve to keep it fair and keep track of which staff members went on leave last year.

    Adjust your opening times

    Consider opening earlier and closing later to maximise your profits. If Christmas is your busy period, this is your chance to boost your profit margins for the year. It is also an opportunity to give some of your employees half days and boost their work-life balance.

    Stock your inventory

    When you have supplies or merchandise like branded shopping bags or business cards, place an order that is big enough to sustain you for the entire holiday season. If you run out of these supplies and there is a delay in production you could find yourself in a tight spot.

    For business advice, accounting and financial advice call our team.

     

     

     

  • Staff Safety at Christmas Parties

    Staff Safety at Christmas Parties

    The Christmas party is a joyous event, but it is also a work-sponsored function, and you have a duty of care to provide to your staff on the night.

    When it comes to planning your Christmas work party, it is important to take the necessary actions to prevent any situation where inappropriate conduct can occur. Being a work-related function, you are responsible for the safety and wellbeing of the guests in attendance. You can be held liable if a workplace claim arises from any inappropriate conduct occurring such as sexual harassment, drug use or derogatory comments.

    Before the big night consider the following:

    Email your staff

    Communicate to your staff via an internal email that this is a professional work-related event. Remind your staff of their obligation to uphold your business’ code of conduct and that normal disciplinary procedures will apply to those individuals who breach the code. Give them clear examples of acceptable and unacceptable behaviour during the celebrations.

    Ensure the venue safety

    When choosing where you will host your Christmas party, you must make sure the venue has adequate OH&S policies and evacuation plans in place. For instance, the venue must ensure safe service of alcohol and a clear exit signage in case of an emergency. Discuss with the venue provider about their relevant policies before purchasing the venue.

    Nominate a supervisor

    Whether it is you or a senior staff member, there should be a supervisor monitoring your employees during the party. In this way, the individual can identify and resolve any risks before they have the chance to escalate, such as restricting alcohol to an overly intoxicated employee and sending them home for the night.

    Consider after-party risks

    If you are supplying alcohol during the event, your employees may be intoxicated at the end of the night, so it is wise to pre-arrange travel arrangements from the Christmas party to ensure they travel home safely, such as a minibus or taxi. Make the start and end time of the Christmas party clear to all attendees and clarify that any ‘after-party’ events are not employer-endorsed.

     

     

     

     

     

     

  • This has been an exciting week for Sophie Frith.

    This has been an exciting week for Sophie Frith.

    Year 10 Sophie Frith joined Leenane Templeton this week for work experience.

    Sophie is no stranger to Leenane Templeton having helped out in the office during holidays, however this week she had a more detailed background and insight into the roles within the business and into what makes the business tick.

    Sophie has spent the week working with accountants, financial planners, administration team, receptionist, marketing & strategy, HR, managers and even attended the monthly meeting.

    Sophie said “Financial Planning is a likely career path I’d like to pursue, I want to be able to build a relationship with people and help them achieve their financial goals. Doing work experience inside of Leenane Templeton would be very valuable to anyone wanting to know more about the industry of finance. The team at Leenane Templeton are very welcoming and happy to help.”

    Harlan Marriott, Chief Commercial Officer of Leenane Templeton has been delighted with Sophie’s attitude and work ethic. “Work experience certainly helps assist students in their transition from school to work and aims to provide students with an opportunity to relate school studies within a workplace. All of the team at Leenane Templeton have been delighted to have Sophie working with them during the week, she has a positive and helpful attitude and certainly added a little more youth and energy to the business.”

    And if Sophie’s surname sounds familiar…  it’s the family business!

     

     

  • The new ipso facto regime and SMSFs

    The new ipso facto regime and SMSFs

    The new law pertaining to ‘ipso facto’ clauses came into operation on 1 July 2018. This article highlights the relevance of the new law for SMSFs. Note that the law in this area is complex and a detailed and careful analysis is required to properly understand how the new ‘ipso facto’ regime operates.

    Background: Purpose of the new law

    ‘Ipso facto’ is a Latin phrase that means ‘by the fact itself’. An ‘ipso facto’ clause is a provision in a contract that allows one party to terminate or modify the operation of a contract upon the occurrence of some specific event, regardless of otherwise continued performance of the counterparty. For example, in an insolvency context, a clause in a lease that allows one party to terminate the lease if the counterparty enters into external administration is an ‘ipso facto’ clause.

    For the counterparty that is affected by an insolvency or formal restructure process, some negative consequences of ‘ipso facto’ clauses include (but are not limited to) the following:

    • the ability to successfully restructure could be reduced; or
    • the market value of a business entering formal administration could be destroyed; or
    • the business could be prevented from being sold as a going concern.

    The introduction of the new law relating to ‘ipso facto’ clauses is part of the Federal government’s reform of Australia’s insolvency laws. This new law is aimed at enabling businesses to continue to trade in order to recover from an insolvency event.

    Summary of the new law

    Broadly, this new law applies to contracts entered into on or after 1 July 2018 and makes certain ‘ipso facto’ clauses that amend or terminate a contract unenforceable if the ‘ipso facto’ clause is triggered merely because:

    • the company is entering into administration (Corporations Act 2001 (Cth) (‘CA’) s 451E) ; or
    • a managing controller has been appointed over all or substantially all of a corporation’s property (CA s 434J); or
    • the company is applying for or undertaking a compromise or arrangement for the purpose of avoiding being wound up in insolvency (CA s 415D).

    Generally, where a triggering event under any of the abovementioned three categories occurs, there is a ‘stay on enforcing rights’. Please note that there is further detail in each relevant section of the CA, covering aspects such as the timing of the stay and the Court’s ability to extend the period of the stay. However, a detailed examination of these sections is beyond the scope and purpose of this article.

    Note also that there also exists exceptions to a ‘stay on enforcing rights’. We summarise these exceptions into four categories:

    • The right is a right under a contract, agreement or arrangement entered into after a triggering event.
    • The right is contained in a kind of contract, agreement or arrangement that is prescribed by the regulations or a kind declared by the Minister.
    • The right is a right of a kind declared by the Minister.
    • Certain parties (named in the CA) have consented in writing to the enforcement of the right.

    Where a party wishes to enforce their rights despite a stay, they can apply for a court order. Broadly, the Court may issue an order if the Court is satisfied that this is appropriate in the interests of justice. (Refer to the CA ss 415E, 434K, 451F for further details about the criteria that the Court considers before making an order).

    Despite the operation of a ‘stay on enforcing rights’, the new law does not prohibit the exercise of a right for any other reason. For example, where there is a breach involving non-payment or non-performance by one party, the counterparty party can pursue its legal rights.

    Relevance of the new law for SMSFs

    While the new law relating to ‘ipso facto’ clauses is not specifically targeted at SMSFs, it is relevant since there are an increasing number of SMSFs, especially SMSFs with corporate trustees, and these SMSFs often enter into various contracts that may contain ‘ipso facto’ clauses. The following are some common scenarios:

    • An SMSF owns business real property and leases it to either an unrelated third-party tenant or a related party tenant. A lease agreement is executed by the SMSF as lessor.
    • An SMSF invests by providing a loan to an unrelated third-party borrower. A loan agreement is executed by the SMSF as the lender.
    • An SMSF enters into a limited recourse borrowing arrangement (‘LRBA’) to purchase real property. The SMSF executes a loan agreement in its capacity as the borrower. The custodian/bare trustee company might also be included as party to the loan agreement.

    Naturally, there are many other scenarios where an SMSF may enter into a contract.

    In the first scenario, the lease may contain provisions stating that the lease agreement is terminated if the tenant enters into administration or the tenant fails to make a lease payment within a prescribed time period. Similarly, in the second scenario, the loan agreement may contain provisions stating that the loan agreement is terminated if the borrower enters into administration or the borrower fails to make a loan repayment within a prescribed time period. In both the first and second scenarios, the SMSF trustee may seek to rely on these provisions to terminate the agreement with the other party on the occurrence of a triggering event.

    In the third scenario, the LRBA documents may contain provisions stating that the loan agreement is terminated if a certain triggering events occur, such as if the SMSF trustee enters into administration or the SMSF trustee fails to make a loan repayment within a prescribed time period. In the third scenario, the third party may try to rely on the provisions against the SMSF trustee upon the occurrence of a triggering event. In all three scenarios, there may be other clauses that deal with the consequence of the termination. It is important for SMSF trustees and advisers to know whether such clauses can be relied upon if a certain triggering event occurs. In certain circumstances, they may also have to decide whether any documents need to be updated in light of the new law relating to ‘ipso facto’ clauses.

    The following is a brief checklist of questions for SMSF trustees and advisers to consider when reviewing contracts.

    • Is a certain clause in the contract an ‘ipso facto’ clause? For example, a clause stating that the contract is amended / terminated if the borrower enters into administration is most likely an ‘ipso facto’ clause.
    • If the clause in the contract is an ‘ipso facto’ clause, does an exception apply? Consider whether the right falls within one of the four categories of exceptions. If an exception applies, there is no ‘stay on enforcing rights’, and the relevant party can seek to rely on the ‘ipso facto’ clause to amend / terminate the contract.
    • If an exception applies and there is a ‘stay on enforcing rights’, can another clause be relied upon for the amendment / termination of the contract? For example, if the borrower has entered into administration and has also failed to make a loan repayment on time, the lender (ie, the SMSF trustee) may seek to terminate the loan agreement. A clause that states that the loan is terminated if the borrower enters into administration may be an ‘ipso facto’ clause and the lender may be prohibited from enforcing a right to terminate based on this fact. However, there may be another clause that states that any outstanding moneys can be recovered if a payment is not received on time. Further, the loan agreement may also specify that the full amount of the loan becomes payable if the borrower fails to make a loan repayment within the prescribed time period. This could allow the lender to recover the full loan amount plus interest plus costs, and to effectively bring the loan agreement to an end despite the other ‘ipso facto’ clause. Such a clause could protect the SMSF trustee in its capacity as a lender.

    For completeness, please note that a ‘stay on enforcing rights’ relating to an ‘ipso facto’ clause does not by itself invalidate a contract. Furthermore, the law in relation to ‘ipso facto’ clauses may be subject to further change in the future. For example, the exceptions to ‘stay on enforcing rights’ may change, so it is prudent to review the law on a regular basis.

    Conclusion

    SMSF trustees and advisers should review all contracts entered into on or after 1 July 2018. SMSF trustees should also obtain documentation (such as LRBA documentation) from a quality supplier firm that has reviewed its documentation to ensure that it is up-to-date in light of this new law in relation to ‘ipso facto’ clauses.

    The law in relation to ‘ipso facto’ clauses is a new area of law and where in doubt, expert advice should be obtained. Naturally, for advisers, the Australian financial services licence under the CA and tax advice obligations under the Tax Agent Services Act 2009 (Cth) need to be appropriately managed to ensure advice is appropriately and legally provided.

    Joseph Cheung, Lawyer and Daniel Butler, Director, DBA Lawyers

    For further information about SMSFs please contact our team at Leenane Templeton

     

     

     

  • What disqualifies you from having an SMSF

    What disqualifies you from having an SMSF

    This article covers the main ways a person becomes a disqualified person, the consequences of disqualification and the options available to those who are disqualified. (We refer to a trustee in this article as covering both individual trustees of an SMSF and directors of SMSF corporate trustees.)

    The ATO will use its powers to render an SMSF trustee a disqualified person where it sees the need, especially for illegal early access breaches. There are other ways a person may become disqualified and some people may not even realise they are disqualified. Acting as an SMSF trustee while disqualified has serious ramifications. It is therefore prudent to be aware of which trustees are or may be disqualified and how a trustee may become disqualified.

    Have you ever been convicted of an offence involving dishonest conduct?

    The first way a person can be a disqualified person is if they were ever convicted of an offence involving dishonest conduct. This is regardless of whether the conviction was in Australia or a foreign country.

    Whether an offence is ‘in respect of dishonest conduct’ is not defined. However, explanatory material to the legislation includes an example of a person convicted of a minor shoplifting offence 20 years ago as an example of an offence involving dishonesty that would disqualify a person. On the other hand, arguably a person convicted of assault is not disqualified, since there is no dishonest intent.

    Generally a person who is convicted of an offence involving dishonest conduct is a disqualified person for life. An exception to this rule exists that allows the ATO to waive a person’s disqualified status. Such an application must be made within 14 days of the conviction. Accordingly, a person who anticipates a conviction must act very quickly.

    An application outside of this 14 day period may be considered if the ATO is satisfied that there are ‘exceptional circumstances’ that prevented the application from being made within time. Also, a waiver can only apply if the offence did not involve serious dishonest conduct where the penalty is no more than two years’ imprisonment or a fine no greater than a specified amount (eg, 120 penalty units).

    Are you a person that is subject to a civil penalty order?

    The second way a person can become disqualified is if a civil penalty order was made against them. Civil penalties are broadly punitive sanctions imposed by the government as restitution for wrongdoing that are imposed through civil procedure rather than criminal process. Civil penalties are typically codified in legislation. Some of the specific civil penalty provisions relating to superannuation are outlined in s 193 of the Superannuation Industry (Supervision) Act 1993 (Cth) (‘SISA’), which include:

    Section     Description
    62(1)           sole purpose test
    65(1)           prohibition on lending to members
    67(1)           borrowing restrictions
    68B(1)        promotion of illegal early release schemes
    84(1)          compliance of in-house asset rules
    85(1)          prohibition of in-house asset rules avoidance schemes
    106(1)        duty to notify the Regulator of significant adverse events
    109(1)        investments of superannuation entity to be made and maintained on arm’s length basis
    109(1A)     dealing with another party not at arm’s length

    In addition to the above SISA provisions, a person may also be disqualified if they are subject to a civil penalty order under other legislation.

    Are you an undischarged bankrupt?

    A person who is an undischarged bankrupt is also disqualified, including an undischarged under a foreign bankruptcy law. However, once a person’s bankruptcy period ends, they will cease to be a disqualified person unless they are disqualified for other reasons.

    Are you disqualified by ATO action?

    In FY2018 the ATO made 257 SMSF trustees from around 169 SMSFs disqualified. Most disqualifications related to illegal early release of money from SMSFs (around 70% of 169 funds).

    Another method open to the ATO is to disqualify because of contraventions of the SISA. The ATO must take into account the nature or seriousness of the contraventions or the number of contraventions. This includes:

    • the behaviour of the person in relation to the contravention;
    • the extent to which a fund’s assets were impacted by the contravention;
    • the extent to which the fund’s assets were exposed to financial risk;
    • the number and extent of contraventions over a period of time;
    • the nature of the contravention in the overall scheme of legislation; and
    • any future compliance risk.

    The ATO can also disqualify if it is satisfied that a person is not a ‘fit and proper person’ to be a trustee. In regard to the fitness of a person, the ATO considers whether the person has the relevant skills to be an SMSF trustee having regard to, among other things, the person’s competency and the responsibilities of an SMSF trustee as well as their ability to answer questions put by the ATO.

    In regard to whether someone is a proper person to be an SMSF trustee, the ATO considers the person’s general behaviour, conduct, reputation and character. Factors that the ATO will consider in assessing this include, among other things, willingness to comply, proper independence in carrying out the role, whether they have been sanctioned by a professional or regulatory body, management of personal debts, integrity and involvement in entities which have been wound up. Naturally, a person who has outstanding tax debts with the ATO or who has been involved with phoenix company activity would not look good.

    Disqualification under this limb can result in adverse public exposure. A person’s disqualified status can easily be obtained from a web search. This adverse public exposure can have a serious adverse impact on a person’s reputation, profession or business. We have had to assist numerous professional and business people who would have suffered considerable loss of business if they were disqualified.

    Consequences of being a disqualified person

    If a disqualified person knows they are disqualified and continues to act as an SMSF trustee, they will be committing an offence with substantial criminal and civil penalties. Furthermore, it is also an offence for a disqualified person to be an SMSF trustee and not tell the ATO immediately in writing. A disqualified person must also immediately cease being a trustee. Company directors also have an obligation to notify ASIC.

    On its website the ATO says that:

    if you resign as a trustee your SMSF effectively has six months to restructure itself. Generally this will mean rolling your super interest out of the fund.

    Broadly, once an SMSF trustee ceases to act the SMSF has a maximum six month period to comply with the trustee-member rules before it ceases to be an SMSF. An SMSF member is required to be a trustee or a director of a corporate trustee to satisfy the definition of an SMSF. Once disqualified, the person can no longer be an SMSF trustee. The law also prevents the member’s legal personal representative (eg, a person appointed under an enduring power of attorney) from being a trustee in place of a disqualified person. So this may force the person to cease being a member of the SMSF unless another option is chosen.

    Options to a disqualified person remaining in an SMSF

    Where a person is disqualified the two main options are to roll over the disqualified person’s member benefits to a large (APRA) superannuation fund (eg, an industry or public offer fund) or convert the SMSF into a small APRA fund by appointing an APRA approved trustee.

    If the disqualified person has retired or attained 65 or satisfied another condition of release with a nil cashing restriction, they can also consider withdrawing all of their benefits from the SMSF. Corrective action must occur within six months of the trustee’s disqualification.

    Conclusion

    The matter of disqualification should be monitored well before establishing an SMSF and continually monitored during its life. Advisers should include, for instance, a regular query to clients whether they have been disqualified for any of the above reasons. Clients are not always forthcoming about offences or other indiscretions they may have been guilty of over the years.

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    This article is for general information only and should not be relied upon without first seeking advice from an appropriately qualified professional.  Article written by Christian Pakpahan, Lawyer and Daniel Butler, Director, DBA Lawyers

    For further information about SMSF speak with our specialist advisors at Leenane Templeton.

    9 November 2018

     

  • LT Wins 2018 SMSF & Accounting Awards

    LT Wins 2018 SMSF & Accounting Awards

    The winners of the 2018 SMSF and Accounting Awards have been revealed at an awards evening in Sydney.

    Together with principal partner SuperConcepts, SMSF Adviser announced the winners of the SMSF and Accounting Awards at a gala dinner in Sydney.

    Leenane Templeton won the Community Engagement Program of the Year Award for their efforts across a number of community involvements including establishing the Hope4Cure Foundation which helps build awareness, support and fundraising for ovarian and gynaecological cancer in the Hunter region.  Andrew Frith, CEO of Leenane Templeton was delighted that the team’s efforts had been recognised.  “The team, clients and public have worked hard to develop the Hope4Cure Foundation, more funds, awareness and support is needed to help battle this terrible disease especially through assisting with research and clinical trials.”

    SMSF Adviser head of sales portfolio Terry Braithwaite congratulated all the winners and finalists for this year. “All the finalists for this year demonstrated strong dedication to servicing their clients through their passion, hard work and technical expertise,” Mr Braithwaite said.

    Principal partner SuperConcepts also congratulated all finalists and winners in NSW. “It’s an honour to be part of such an exciting and competitive event,” said Peter Burgess, SuperConcepts general manager for technical and education services. “It has been a busy year for SMSF and accounting professionals, and we are pleased to be celebrating their hard work in their home states,” Mr Burgess said.

     

     

     

     

  • New Unpaid Entitlement

    New Unpaid Entitlement

    From 1 August 2018, The Fair Work Commission introduced a new unpaid family and domestic leave entitlement for employees in all industry and occupation awards.

    Under the new clause employees will be entitled to five days of unpaid family and domestic violence leave annually. The entitlement applies to all employees covered by an industry or occupation award and businesses are required to apply the new clause to each worker’s first full pay period on or after 1 August 2018.

    Employees are eligible to take the leave to deal with the impact of family and domestic violence, providing it is impractical to do so outside their ordinary hours of work. The leave is in place for situations where an employee’s family member uses violent, threatening or another abusive behaviour to seek to coerce or control the employee or causes the employee fear or harm.

    This entitlement does not apply to employees covered by enterprise awards, state reference public sector awards, enterprise and other registered agreements, or those employees who are award and agreement free.

     

     

  • LT sponsors local junior cricket

    LT sponsors local junior cricket

    We are pleased to announce Leenane Templeton Chartered Accountants & Financial Advisors as the major sponsor of the Newcastle Junior Cricket Association representative teams for the next 4 seasons (until season 2021/2022).

    Andrew Frith, CEO of Leenane Templeton has been involved in representative cricket for a number of years. Andrew is passionate about cricket and working with the Newcastle Junior Cricket Association and Cricket NSW to enhance the skill set of the junior representative cricketers.  Andrew said “This financial support aims to help the Newcastle junior representatives to fine tune their cricket skills, increase standards and help boost the professionalism of junior representative cricket across the board.  Newcastle players will have increased access to resources which are comparable to those of Sydney teams.”

    Newcastle Junior Cricket Association has placed the professionalism of its Representative Program as one of its major priorities over the past few seasons which has seen it work closely with Cricket NSW, its coaches and its pathway programs.

    Andrew Standing , President of Newcastle Junior Cricket Association said “we are excited to welcome Leenane Templeton Chartered Accountants & Financial Advisors to be part of our Representative Program.  The sponsorship from Leenane Templeton Chartered Accountants & Financial Advisors will enable Newcastle cricketers to access some of the best coaching and facilities available and place us on a level playing field with cricketers from Sydney regions. We see this as a major step in helping the future stars of Newcastle follow in the footsteps of the likes of Jason Sangha in donning the Baggy Blue”.

    Cricket NSW Greater Hunter Coach and Talent Specialist, Brett Rankin congratulates Leenane Templeton and the NJCA on this wonderful initiative. “Newcastle has a strong junior playing base and this partnership will allow local Representative Cricketers (Male and Female) to better access quality resources and current methods which will assist in fast tracking the development of our local players” Rankin said.

    Leenane Templeton Chartered Accountants & Financial Advisors are a local award winning firm offering accounting, tax, business advice, financial planning and SMSF services to both business owners and individuals.  More information can be found at www.LT.com.au

     

  • What is responsible lending and why does it matter?

    What is responsible lending and why does it matter?

    Whether it’s due to over-enthusiastic lenders or desperate borrowers, failure to adhere to robust lending standards can land some borrowers in serious financial distress. In many cases the difficulties experienced by these borrowers could have been avoided if the lenders had complied with their responsible lending obligations.

    In brief, this means inquiring into a borrower’s financial situation and requirements, verifying the information supplied, and making an assessment as to whether or not the credit contract is suitable for the borrower. Ideally, the lender should also consider the ability of the borrower to maintain loan payments if there is an increase in interest rates. This is a common pathway into mortgage stress – the situation where loan repayments take up too large a fraction of household income.

    The Inquisition

    In the past, lenders often relied on loose assumptions of household expenditure when estimating a borrower’s financial commitments. That’s no longer the case, so if you’re looking for a new loan or to refinance an existing one, be prepared to provide the following information and documents:

    • The amount and source of your income, and duration and type of employment. This will need to be documented via payslips or through bank statements and tax returns if you are self-employed.
    • Your fixed expenses such as rent, other loans, credit cards, child support, insurance premiums and school fees.
    • Your variable expenditure, including food, holidays and entertainment.
    • Your age and number of dependants.
    • Details of your assets with a focus on financial assets.
    • Information on any foreseeable changes such as retirement.

    You can also expect your prospective lender to delve into your credit history.

    If you are using the loan to buy an investment property make sure you disclose this. You will likely face a higher interest rate, but don’t be tempted to deceive the lender. They are adept at detecting so-called ‘occupancy fraud’. You may also need to come up with a bigger deposit on an investment property purchase. This will decrease the sum you can borrow, limiting the price range in which you can buy.

    Age needn’t be a barrier to taking out a home loan. However, anyone borrowing with a likelihood of retiring before the loan is paid off needs to have an exit strategy. This could be paying off the loan with superannuation, downshifting to a cheaper home, or even taking out a reverse mortgage.

    Tighter adherence to responsible lending practices could likely lead to a reduction in the amount that people can borrow. However, this reduction in the amount of money flowing into the housing market should dampen down growth in house prices. Overall, more responsible lending may not have a major impact on housing affordability, but preferably see a reduction in the number of households experiencing mortgage stress.

    Prepare ahead

    Having answers to all the questions and the right documentation will come in handy when it’s time to apply for a loan. If a new loan or refinancing an existing one is on your radar, ask your financial adviser to help you prepare ahead of time.

  • Changes to GST at settlement forms

    Changes to GST at settlement forms

    The Australian Taxation Office (ATO) has announced changes to the way GST is collected at settlement.

    According to the ATO, those purchasing new residential premises or potential residential land who are required to withhold part of the purchase price for payment (to the ATO) must submit a number of online forms. These forms include:

    GST property settlement withholding notification:
    this form covers various areas including contact details, property details, purchaser details, supplier details and an overall summary. The form can be submitted any time after you have entered into the contract and before the date of the withholding obligation is due. Generally, the due date of the withholding obligation is due on the settlement day; unless you are using an instalment contract. In this instance, the due date will be the date the first instalment is paid.

    GST property settlement date confirmation:
    this form is quite straightforward and requires you to check a yes or no box to the following questions:

    • Have you completed the GST property settlement withholding notification form?
    • Are you submitting the form as a purchaser or as a representative for the purchaser?
    • Have the purchaser and/or supplier details changed since the GST withholding notification form was lodged?

    The form can be submitted at the due date of the withholding obligation. This will be at the time of settlement or when the first instalment is paid.

    In addition to understanding when the forms are due, you must consider the following:

    • Those who hire a representative need to complete a signed declaration and send it to their conveyancer or solicitor. This will allow for the two forms to be submitted on the purchaser’s behalf.
    • In regards to a standard land contract, it is required that the withholding amount is paid on the day of settlement unless an instalment contract is used. In this case, it is due when the first instalment (other than a deposit) is paid.
    • Payment reference number should be included on all payments made.

    For further information about GST changes and other related tax issues please contact our tax team at Leenane Templeton on (02) 4926 2300.

  • How are super death benefits taxed?

    How are super death benefits taxed?

    When it comes to how the super death benefit is paid out, there are specific tax implications involved which affect the amount a nominated beneficiary will receive.

    In a situation where super is paid out after an individual has passed, it is generally split up into two components; taxable and tax-free. The tax-free portion of a super death benefit is tax exempt and can include payments of after-tax contributions and government co-contributions.

    While the taxed component is primarily made of employer contributions, personal contributions (when a tax deduction is claimed) and salary sacrificed contributions. Upon receiving a super death benefit, the amount of tax you as the beneficiary will be required to pay will depend upon your age and a number of considerations.

    These include:

    • The deceased individual’s age at the time of their passing
    • If the superfund has already paid all tax owing on the taxable component
    • Whether the income stream is account-based or a capped defined benefit income stream
    • Whether you are the dependant of the deceased individual (i.e., you rely on their financial support)
    • If it is paid out in one payment or as an income stream

    The Australian Tax Office (ATO) does not require you to pay any tax on the taxable component of a super death benefit you receive when you are a dependant of the deceased individual and receive the payment as a lump sum. However, varying rates may apply (depending upon the above considerations) if you accept the balance of the benefit as an income stream.

    In cases, where you are not a dependant of the deceased individual, you will receive the balance of the benefit in one payment. The taxable component of the amount will be taxed at your marginal tax rate. However, you may have this rate reduced providing you are eligible for tax offsets.

    For more information about superannuation and your personal finances please call our wealth management team.

     

     

     

     

     

  • Claiming the $20,000 instant asset write-off

    Claiming the $20,000 instant asset write-off

    Businesses with an annual turnover less than $10 million (from 1 July 2016) can claim the $20,000 instant asset write-off.

    Eligible businesses can take advantage of the instant asset write-off for the business portion of their assets, providing they bought and installed the assets for less than $20,000 each.

    Avoid under claiming by applying the simplified depreciation rules. Always ensure to write-off eligible assets costing less than $20,000 each and were bought, used and installed ready to use, from 7.30pm (AEST) on 12 May 2015 – 30 June 2018. Pool the majority of other depreciating assets that cost $20,000 or higher and claim a 15 per cent deduction in the first year and a 30 per cent deduction every following year.

    Write-off the small business pool balance providing it is less than $20,000 before applying any other depreciation deduction at the end of the income year and make sure to only claim a deduction for the portion of the asset that is used for business or other taxable purposes.

    The current instant asset write-off was meant to apply till 30 June 2018, however the Government has proposed extending till 30 June 2019.

    Call our business services team for help and advice with your business.  Call (02) 4926 2300

     

     

     

  • A different way to help the grandkids

    A different way to help the grandkids

    Many grandparents want to give their grandchildren a head start in life, and a common way to do so is to help by paying some (or all) of their school fees. This can, of course, simply be done by making a contribution at the time the fees are payable. However, it’s not unusual for grandparents to plan ahead by setting funds aside in a specific account. That is one option, but there might be a better one.

    Plan A

    Donna and Simon are a typical example. They decide to put $50,000 into a term deposit to help pay the school fees of their granddaughter Ellie when she starts secondary school in 10 years’ time. With an interest rate of 2.6% per annum (pa) and interest paid annually, their initial deposit will grow to $64,631 – a nice boost to Ellie’s future education.

    But is there a better way to use that $50,000?

    While it’s nice to have a specific account with its special status and easy to see growth, the important thing is the overall pool of money available to the family when the time comes to stump up the school fees.

    Plan B

    Ellie’s parents, Sara and Shane, are five years into paying off their mortgage. Their interest rate is 5% pa, the remaining balance is $530,000, and their monthly repayments are $3,500. If interest rates and payments remain steady, in 10 years’ time their mortgage balance will be down to around $329,427.

    What if, instead of setting up the term deposit, Donna and Simon gift the $50,000 to Sara and Shane who then deposit it in their mortgage account? This sees them effectively servicing a smaller loan. Maintaining their usual monthly repayments will now reduce the amount they owe on their mortgage in 10 years to approximately $247,077, giving them more equity in their home to draw on for school fees.

    Difference

    Plan A turned $50,000 into $64,631, a net benefit of $14,631. But plan B more than doubled that benefit to $32,350!

    Of course, Donna and Simon will need to feel confident that they can trust Sara and Shane to use the gift in the way they intend, and not to redraw it for holidays or other purposes. And if they are receiving any age pension, or intending to apply for one in the next five years, Donna and Simon will also need to be aware of the gifting rules and how this gift could impact their pension payments.

    Get advice first

    This is just one example of how intergenerational planning can significantly grow the wealth of the extended family unit.

    If you’re seeking the most effective way to assist your children and grandchildren financially, talk to your financial planner first. You can call our team at Leenane Templeton on (02) 4926 2300 or contact us here.

  • Strategies to reduce your total superannuation balance Pt 3

    Strategies to reduce your total superannuation balance Pt 3

    Due to the importance of total superannuation balance (‘TSB’) testing under the major superannuation reforms, fund members have a strong incentive to carefully monitor their TSB over time and plan accordingly to moderate their TSB to fall within certain key thresholds.

    In part 1 of our series, we discussed the various components of a person’s TSB and we examined how making pension payments and/or lump sum payments could reduce a member’s TSB. In part 2 of our series, we examined paying arm’s length expenses to reduce a member’s TSB.

    In the part 3 of our series, we examine two other strategies to reduce an individual’s TSB — namely, tax effect accounting and contribution splitting.

    Strategy #3: Apply tax effect accounting

    Tax effect accounting (‘TEA’) is a prudent accounting methodology that can be adopted by self managed superannuation funds (‘SMSFs’) to recognise future tax liabilities as part of the SMSF’s financial position. In particular, TEA can be relevant for managing TSB compliance by helping to ensure that an individual’s TSB is correctly reflected having regard to taxation.

    The starting point is that member account balances in an SMSF broadly reflect the financial position of the SMSF (ie, the value of the SMSF’s net assets). Naturally, this means that member account balances are based on the market value of the relevant SMSF’s assets (refer to reg 8.02B of the Superannuation Industry (Supervision) Regulations 1994 (Cth) (‘SISR’)).

    In practice, many advisers and SMSF trustees treat a member’s account balance as equivalent to the member’s TSB except where the member has multiple superannuation funds. Moreover, the ATO’s default position is to use the member account balance information disclosed in an SMSF’s annual return to calculate an individual’s TSB (assuming the member is not a member of another SMSF and that no structured settlement amounts have been contributed to the SMSF).

    However, it should be noted that a member’s TSB is not identical to their account balance. Broadly, a member’s TSB represents the amount of their accumulation phase interests and retirement phase interests that would become payable if the individual voluntarily caused the relevant interests to cease at a particular time. This ‘withdrawal benefit amount’ can broadly be equated to the net realisable value of the relevant interests, and could take into account tax payable and perhaps also future costs associated with realising the assets that support the relevant accumulation and/or retirement interests.

    While the Transfer Balance Account Report (’TBAR’) system informs the ATO of an individual’s TSB (refer to question 15 of the TBAR form) and essentially overrides the ATO’s account balance derived TSB value, this requires ongoing intervention and may not be attractive for many advisers.

    As an alternative to using TBAR to manually change the ATO’s TSB records periodically, SMSFs have the option to apply TEA so that the SMSF’s financial position, and therefore member account balances, better reflects the elements of the TSB definition. For instance, TEA facilitates the recognition of deferred tax liabilities where there is reasonable certainty that a future tax liability will arise for the SMSF. The tax payable on a ‘deferred notional gain’ in relation to capital gains tax (‘CGT’) relief is one example of a future tax liability that could be reasonably certain. Naturally, this is subject to there being no anticipated (current or carried forward) capital losses which could eliminate the deferred notional gain in the financial year that the asset (ie, the asset that received proportionate CGT relief) is realised.

    The application of TEA can potentially reduce the value of an SMSF’s ‘net assets’ if there is a deferred tax liability and the amount of the deferred tax liability is greater than any applicable deferred tax asset (generally, it is rare for an SMSF to have deferred tax assets). Naturally, such a reduction in an SMSF’s net assets will result in a corresponding reduction in member account balances (since the balances are net of tax) which could lead to a more accurate calculation of a member’s TSB. We illustrate this in the following example.

    EXAMPLE 1

    Frank and Jessica are the members of the FJ SMSF. The FJ SMSF does not use TEA and the FJ SMSF’s ‘net assets’ sum to $2,000,000 as at 30 June 2019. Frank and Jessica have equal member account balances of $1,000,000 each which is disclosed in the FJ SMSF’s annual return.

    The FJ SMSF trustee used the proportionate CGT relief to reset the cost base of a rental property to its market value as at 30 June 2017 of $1,000,000. The property was acquired ten years ago and had an original cost base of $250,000. Assume 50% of the crystallised notional gain is non-exempt, ie, ECPI equals 50%. The notional gain is broadly the following amount:

    $750,000 (the gross gain arising from the election to apply CGT relief) x 2/3 (reflecting the 1/3 CGT discount) x 50% (non-exempt portion) = $250,000.

    The FJ SMSF elected to defer the notional gain on 30 June 2017. As at 30 June 2019, FJ SMSF still retains ownership of the property.

    If FJ SMSF had applied TEA, the income tax payable in relation to the FJ SMSF’s ‘deferred notional gain’ of $250,000 could be recognised in the FJ SMSF’s financial position. In broad terms this tax is likely to be approximately $37,500 (15% x $250,000). Accordingly, all else being equal, if the FJ SMSF used TEA, the FJ SMSF’s ‘net assets’ would sum to $1,962,500 as at 30 June 2019. This would mean that Frank and Jessica would each have a member account balance of $981,250 instead of $1,000,000.

    Without TEA, each member’s account balance would have been overstated by $18,750, which could result in an overstated TSB.

    If Frank and Jessica were commencing account-based pensions on 1 July 2019, this approach could mean the difference between the FJ SMSF being required to report annually, rather than within 28 days of the end of each quarter of when a relevant event occurs. The annual or quarterly TBAR timing cycles depend on the TSB of an SMSF’s members when the SMSF trustee has to first report an event under the TBAR regime.

    Strategy #4: Spouse contributions-splitting amounts

    Contributions splitting is another available strategy to reduce an individual’s TSB. Details on the eligibility criteria and the process can be found in div 6.7 of the SISR.

    Generally, the maximum splittable amount, in relation to a financial year (‘FY’), means the lesser of:

    • 85% of the concessional contributions (‘CCs’) for that financial year; and
    • the CCs cap for that financial year.

    We illustrate the effect of contributions splitting in the following example:

    EXAMPLE 2

    Vincent and Natalie are a married couple. They are both members of the same superannuation fund. During FY2018, Vincent’s employer made superannuation guarantee contributions of $10,000 and a further $10,000 CC pursuant to an existing salary sacrifice arrangement. For completeness, assume the salary sacrifice arrangement ends in FY2018 and does not apply for future FYs. The total CCs made in respect of Vincent for FY2018 sum to $20,000. Vincent’s TSB as at 30 June 2018 is $1,605,000.

    Assume Vincent and Natalie satisfy all the criteria to pursue contributions splitting. On 10 July 2018, Vincent completes the Superannuation contributions splitting application and lodges it with his superannuation fund. He enters the figure of $16,000 at question 20 of the form labelled ‘taxed splittable contributions’ to split his employer contributions.

    Vincent’s superannuation fund accepts his application and determines that it is valid because $16,000 is: (a) less than 85% of the $20,000 contributed by his employer, and (b) less than his CC cap for FY 2019 (ie, it is less than $25,000). Accordingly, Vincent’s superannuation fund processes his application and transfers $16,000 to Natalie’s member account balance. This results in Vincent’s TSB being reduced by $16,000 — ie, it is now $1,589,000, which is a more advantageous position under the superannuation rules.

    Moreover, if Vincent carefully plans and monitors his TSB for the remainder of FY2019, he could keep his TSB under $1,600,000 as at 30 June 2019.

    For completeness, we note that the contributions splitting strategy can be applied by members of large superannuation funds, as well as members of SMSFs provided the trustee and trust deed authorises contributions splitting.

    Anti-avoidance provisions

    Before implementing any of the strategies listed above, consideration should be given to determine whether the implementation of a certain strategy to a particular set of background facts might trigger the application of the general anti-avoidance provisions. We have not covered any anti-avoidance provisions such as pt IVA of the Income Tax Assessment Act 1936 (Cth) in this article. However, if the ATO considers that a tax benefit arose from a scheme that was tax driven, there is the prospect of the ATO raising pt IVA. Where in doubt, expert advice should be obtained.

    Conclusions

    Four strategies to more effectively manage an individual’s TSB have been covered as part of our series of articles. These strategies can be used in isolation or in various permutations. Naturally, there may be other strategies that can be used to reduce an individual’s TSB.

    The law in relation to TSB is a complex area of law and where in doubt, expert advice should be obtained. Naturally, for advisers, the Australian Financial Services Licence under the Corporations Act 2001 (Cth) and tax advice obligations under the Tax Agent Services Act 2009 (Cth) need to be appropriately managed to ensure advice is legally provided.

    Article provided by permission of DBA Lawyers to Leenane Templeton.  Written by Joseph Cheung, Lawyer and William Fettes, Senior Associate, DBA Lawyers.

    For SMSF advice please contact us

    14 August 2018

     

  • SMSF & Accounting Awards Finalists

    SMSF & Accounting Awards Finalists

    Leenane Templeton has been shortlisted for SMSF and Accounting Awards 2018

    The firm is officially in the running to take home an award at the prestigious SMSF and accounting event of the year.

    Leenane Templeton joins the roster of finalists to win “community engagement program of the year” award at the SMSF and Accounting Awards 2018. The first-of-its-kind, the nationwide industry event recognises state-based performance in SMSF and accounting professions across Australia.

    Now on its second year, the SMSF and Accounting Awards, in partnership with SuperConcepts, continues to honour the individuals and businesses who are leading the way in SMSF advice and accounting by championing professionalism, quality advice and innovation. The best advisers and firms in the industry will be recognised across 20 individual and group categories.

    “SuperConcepts is very pleased to be partnering with the SMSF Summit, particularly during a period of significant change and reform,” said Peter Burgess, general manager for technical and education at SuperConcepts. “I’d like to congratulate all finalists and wish them the best of luck at the SMSF and Accounting Awards in 2018. It’s an honour to be part of such an exciting and competitive event.”

    For more information about our awards click here.

     

     

     

     

     

     

     

  • Strategies to reduce your total superannuation balance: Part 2

    Strategies to reduce your total superannuation balance: Part 2

    An individual’s total superannuation balance (‘TSB’) determines many of their superannuation rights, entitlements and obligations. Accordingly, there is a strong incentive for individuals to carefully monitor their TSB over time, particularly towards the end of a financial year (‘FY’) when most TSB thresholds are tested.

    In part 1 of our series on moderating the TSB, we discussed the various components of a person’s TSB and examined how making pension payments and/or lump sum payments could reduce a member’s TSB, subject to certain provisos. In part 2, we examine paying arm’s length expenses.

    Strategy #2: Pay arm’s length expenses

    Naturally, paying fund expenses using fund resources can reduce an individual’s TSB. Some common and accepted expenses incurred by SMSFs include, but are not limited to the following:

    • the SMSF supervisory levy;
    • investment-related expenses, such as brokerage and bank fees;
    • accounting fees to prepare and lodge the annual return for the self managed superannuation fund (‘SMSF’);
    • audit fees;
    • actuarial services;
    • operating expenses such as management and administration fees; and
    • annual review fees for a corporate trustee.

    However, it should be borne in mind that inappropriate outgoings or expenses could be problematic for superannuation law purposes, including under:

    • the sole purpose test
    • the payment standards;
    • the prohibition on providing financial assistance to members and relatives; and
    • the arm’s length rule in s 109 of the Superannuation Industry (Supervision) Act 1993 (Cth).

    Additionally, payment of an expense which is less than an arm’s length amount could enliven the non-arm’s length income (‘NALI’) provisions in the Income Tax Assessment Act 1997 (Cth) under the Australian Taxation Office’s (ATO’s) current administrative practice to NALI. Moreover, it should be noted that the proposed rewording of the NALI provisions in the Treasury Laws Amendment (2018 Superannuation Measures No. 1) Bill 2018 will make the application of NALI to an expense which is less than an arm’s length amount much clearer, even where the amount of ordinary income or statutory income derived by the trustee of the SMSF is the same as might be expected in terms of arm’s length dealings.

    Another relevant rule that must be considered is reg 5.02(3) of the Superannuation Industry (Supervision) Regulations 1994 (Cth). Regulation 5.02(3) requires the trustee of a regulated superannuation fund to ensure that fund costs are distributed in a ‘fair and reasonable manner’ as between all members of the superannuation fund and the various kinds of benefits held by each fund member. This is illustrated in the following example:

    EXAMPLE

    Rico and Joel are brothers and members of an SMSF known as RJ SMSF which is 100% in accumulation phase. They are also the directors of R&J Pty Ltd, which acts solely as the trustee of the RJ SMSF. Rico and Joel are not members of any other superannuation fund.

    Based on their working papers, the brothers anticipate that just before 1 July 2018, Rico’s TSB will be $1,604,000 and Joel’s TSB is $802,000.

    However, in the weeks leading up to 30 June 2018, R&J Pty Ltd obtains extensive professional advice for the fund from a reputable financial planner and tax agent.

    On 25 June 2018, R&J Pty Ltd receives an invoice in relation to the advice for $12,000 which is payable within 14 days. For completeness, all dealings between the relevant parties were at arm’s length and the amount charged was consistent with commercial rates for such professional advice. Accordingly, the directors of R&J Pty Ltd have a choice to either:

    • pay the invoice either in FY2018 (ie, on or before 30 June 2018); or
    • pay the invoice in FY2019 subject to the payment terms.

    The directors of R&J Pty Ltd ultimately elect to pay the invoice before 30 June 2018.

    As Rico and Joel are the only two members of the RJ SMSF, the directors of R&J Pty Ltd resolve to charge the cost of the invoice in a ‘fair and reasonable manner’ by apportioning the fee proportionately based on their respective entitlements in the fund. Accordingly, the total amount of the expenses ($12,000) is apportioned as follows: $8,000 is charged against Rico’s benefits and $4,000 is charged against Joel’s benefits.

    As a result of this course of action, immediately before 1 July 2018 Rico’s TSB is $1,598,000 (it would have been increased to $1,606,000 if not for the $8,000 expense charged against Rico’s benefits). Similarly, immediately before 1 July 2018, Joel’s TSB is $799,000 (it would have increased to $803,000 if not for the $4,000 expense charged against Joel’s benefits).

    Conclusion

    As can be seen from the above, paying arm’s length and appropriate fund expenses can be used as a strategy to reduce an individual’s TSB, subject to the super and tax rules. This strategy can be used in isolation or in various permutations with other strategies.

    Before implementing any strategies, consideration must be given to determine whether the implementation of a certain strategy to a particular set of background facts might trigger the anti-avoidance provisions. We have not covered any anti-avoidance provisions such as pt IVA of the Income Tax Assessment Act 1936 (Cth) in this article. However, if the ATO considers that a tax benefit arose from a scheme that was tax driven, there is the prospect of the ATO raising a pt IVA assessment. Where in doubt, expert advice should be obtained.

    In Part 3 of our series, we highlight two other strategies that can be used to reduce an individual’s TSB.

    The law in relation to TSB is a complex area of law and where in doubt, expert advice should be obtained. Naturally, for advisers, the Australian Financial Services Licence under the Corporations Act 2001 (Cth) and tax advice obligations under the Tax Agent Services Act 2009 (Cth) need to be appropriately managed to ensure advice is legally provided.

    Article provided by permission of DBA Lawyers to Leenane Templeton.  Written by Joseph Cheung, Lawyer and William Fettes, Senior Associate, DBA Lawyers.

    For SMSF advice please contact us

    August 2018

  • Unlocking the mysteries of your super statement

    Unlocking the mysteries of your super statement

    Superannuation statements. Boring, right? But if, like many people, you toss your annual super statement in a drawer or hit delete, you could be depriving yourself of many thousands of dollars just when you need it. So it’s worth the small effort to take a closer look at your superannuation statement. If everything is in order, you’ll get a warm glow from watching your nest egg grow. Conversely, a quick check of your statement may reveal some of the common problems that occur with super; and the sooner these are fixed the quicker your savings can increase.

     

    What to look for

    The layouts of statements vary between super funds, but there is standard information that must be provided. Some items may appear in summary form, with a detailed breakdown shown elsewhere. Here are the key things to look for:

    • Contributions or funds in. This will cover employer and personal contributions, government contributions and rebates, plus any rollovers. If you’re an employee earning more than $450 per month, your employer should be paying 9.5% of your ordinary time earnings to your super fund. Payments can be made either quarterly or monthly. Calculate the contributions shown on your pay slip are at the right rate and that they match the contributions received by your super fund.

     

    • Funds out. Most commonly this comprises administration and investment management fees, and any insurance premiums. Excessive fees can place a real drag on the performance of your savings, so check that they are competitive with other funds.

     

    • Investment earnings. This covers interest and share dividends, along with any capital growth in the value of your investments. Be aware that depending on your specific investment mix and the performance of markets, this figure may sometimes be negative.

     

    • Insurance cover. Your super fund may provide death and/or disability insurance. If so, check that it is appropriate and adequate for your needs. Maybe you are paying for insurance cover you don’t need, or are inadequately insured.

     

    • Investment options. This will show what your money is invested in, and in many cases the performance of each investment. Your investment choices will be one of the main influences on the ultimate value of your retirement savings. Professional advice in this area is strongly recommended.

     

    Other things to check

    • Have you provided your tax file number? If not, the fund will be deducting too much tax from your contributions and earnings.
    • Have you made a binding death benefit nomination? This allows you to choose, within applicable rules, who your superannuation is paid to upon your death.
    • Is your name and address up to date? Is it possible you have ‘lost super’. This occurs when a super fund can no longer contact you. The Australian Tax Office can help your find lost super. Start here https://www.ato.gov.au/forms/searching-for-lost-super/.
    • More than one statement? Ideally, you should consolidate all your superannuation into one fund. This will avoid duplication of fees and insurance premiums, and make your super much easier to manage. However be mindful of losing insurance benefits before you consolidate your funds.

    It may not rival the latest video game or binge-able TV series for entertainment value, but delving into your super statement can be way more rewarding.

    Invaluable advice

    Super is one area in life where professional advice can really pay off. If you need help with understanding investment options, consolidating multiple super funds, finding lost super, or ensuring you have the right insurance cover, talk to your financial adviser. The sooner you do, the sooner you’ll be on track to growing your super pot of gold.

     

    For more information about your superannuation or for financial and accounting advice please call our team at Leenane Templeton on (02) 4926 2300 or contact us.